Question 1

Which of the following illustrates the MOST common form of environmental turbulence?
A) Organizational crisis
B) Jockeying among competitors for market position
C) Power of buyers
D) Environmental scanning
E) Extremely dynamic environment

Accepted Answer

The answer of Which of the following illustrates the MOST...

Question 2

National Industries,supplier to all Hometown Hardware Stores,manufactures many of the products it sells to member stores.What kind of response to the organizational environment does this represent?
A) Social responsibility
B) Internal
C) Direct influence
D) An organic organization design
E) An organization culture modification

Accepted Answer

National Industries manufacturing many of the products it sells to member stores represents a direct influence on its organizational environment. By producing the products, the company is actively shaping its supply chain and exerting control over the quality and availability of the goods it provides to Hometown Hardware Stores. This direct involvement in the production process allows the company to influence its operational environment more significantly than if it were merely distributing products made by others.

Question 3

Dollar Thrifty told Hertz and Avis Budget to submit their best and final proposals.In the end Dollar Thrifty combined with one of the companies in a(n)
A) acquisition by Hertz.
B) merger.
C) joint venture.
D) acquisition by Avis Budget.
E) strategic alliance.

Accepted Answer

Dollar Thrifty combined with either Hertz or Avis Budget through a merger, as they asked both companies to submit their best and final proposals. A merger involves the combining of two or more companies to form a new entity, which would be the case for Dollar Thrifty and either Hertz or Avis Budget.

Question 4

Which of the following is the BEST example of environmental turbulence?
A) A new company opens a store to compete in your market.
B) The Japanese economy experienced the tsunami and nuclear reactor problem.
C) A competitor announces a new lifetime warranty program.
D) A competitor announces development of a substitute for the product that has been your big seller.
E) The sole supplier of one of your raw materials is shut down by a prolonged labor strike.

Accepted Answer

Environmental turbulence refers to unexpected, dramatic changes in the environment that can significantly impact organizations. The Japanese economy experiencing the tsunami and nuclear reactor problem is the best example of environmental turbulence among the options given because it represents a sudden, unpredictable, and profound change affecting businesses, infrastructure, and the overall economy in ways that are difficult to prepare for or immediately mitigate.

Question 5

When two or more firms combine to form a new firm,it is called a(n)
A) takeover.
B) acquisition.
C) merger.
D) organic design.
E) mechanistic design.

Accepted Answer

A merger is the combination of two or more firms to form a new firm. A takeover is when one firm acquires another firm. An acquisition is the process of purchasing one firm by another. Organic and mechanistic design refer to the structure of an organization and are not relevant to the question.

Question 6

An organization design that is mechanistic
A) operates in an uncertain environment.
B) uses few standard operating procedures.
C) gives its managers considerable discretionary decision-making power.
D) is characterized by formal and rigid relationships.
E) None of these choices

Accepted Answer

A mechanistic organization design is characterized by formal and rigid relationships, strict hierarchies, and standardized procedures. It is designed to work best in stable and certain environments, where efficiency and consistency are more important than creativity and flexibility. Therefore, D is the correct answer. The other choices are inconsistent with the characteristics of a mechanistic organization design.

Question 7

Hunter sells security surveillance equipment to international airports.His job is to go to the prospective customer,examine the airport's current security,locate problem areas,and explain how his company's security surveillance system would eliminate these problems.Hunter is an example of a(n)
A) intelligence agent.
B) boundary spanner.
C) strategic ally.
D) regulator.
E) buyer.

Accepted Answer

Hunter's role as a salesperson requires him to serve as a boundary spanner, bridging the gap between his company and potential customers, and communicating the needs of the customer back to his company.

Question 8

One of the reasons so many Internet companies fail is due to a lack of standardized operating procedures.The companies' managements are afraid of stifling their creative employees by using a rigid structure with lots of rules and regulations.Instead employees are given few rules and allowed to use their own judgment when making decisions.What type of organization design would you find in most of these companies?
A) Mechanistic
B) Autocratic
C) Bureaucratic
D) Organic
E) Formalized

Accepted Answer

The description of allowing employees to use their own judgment and lack of standardized operating procedures points towards an organic organization design. Organic organizations tend to be less formalized and more flexible, with a focus on innovation and adaptation.

Question 9

When Dayton Hudson was the target of a hostile takeover it was able to use its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase.Dayton Hudson responded to the crisis using
A) merger.
B) direct influence.
C) hostile takeover.
D) alliances.
E) acquisitions.

Accepted Answer

Dayton Hudson used its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase. This strategy is known as direct influence, which involves leveraging relationships, power, and resources to achieve a desired outcome without resorting to a merger, hostile takeover, alliance, or acquisition.

Question 10

The Northeast region of the U.S.experienced flooding from Hurricane Irene.This is an example of
A) environmental turbulence.
B) environmental homogeneity.
C) competitive rivalry.
D) the threat of new entrants.
E) boundary spanning.

Accepted Answer

Environmental turbulence refers to unexpected and disruptive events in the external environment of an organization. Floods caused by natural disasters such as hurricanes are examples of environmental turbulence.

Question 11

Which of the following is an example of one of the basic mechanisms that organizations use to adapt to their environment?
A) Information management
B) Direct influence
C) Strategic response
D) Organization design and flexibility
E) All of these choices

Accepted Answer

All of the options listed (information management, direct influence, strategic response, and organization design and flexibility) are mechanisms that organizations use to adapt to their environments. These mechanisms help organizations to respond to changes, manage challenges, and leverage opportunities in their external environments.

Question 12

A purchasing agent is an example of a(n)
A) intelligence agent.
B) boundary spanner.
C) strategic ally.
D) regulator.
E) supplier.

Accepted Answer

A purchasing agent is a boundary spanner, as they interact with both internal departments (such as finance, engineering, and production) and external suppliers. They serve as a bridge between multiple parts of the organization, facilitating communication and coordination to ensure that goods and services are acquired in a timely and cost-effective manner. Intelligence agents gather information on competitors, regulators enforce laws and regulations, suppliers provide goods and services, and strategic allies collaborate with organizations in joint ventures or partnerships.

Question 13

Wal-Mart is the largest retailer in the world.It successfully pressures suppliers to lower prices.Wal-Mart uses
A) socially responsibility.
B) direct influence.
C) a mechanistic organization design.
D) an organic organization design.
E) an organization culture modification.

Accepted Answer

Wal-Mart uses direct influence to pressure suppliers into lower prices by negotiating with them and leveraging its buying power. This is not an example of socially responsibility, organization design, or culture modification. While there may be elements of mechanistic or organic design within the organization, it is not the primary strategy for lowering prices.

Question 14

Organizations directly influence their environment by
A) lobbying.
B) signing long-term contracts with suppliers.
C) lowering prices.
D) bargaining with labor unions.
E) All of these choices

Accepted Answer

All of these choices are ways in which organizations can directly influence their environment. Lobbying allows organizations to advocate for their interests and policies to government officials. Signing long-term contracts with suppliers can provide stability and ensure a reliable supply of goods or services. Lowering prices can impact competition and consumer behavior. Bargaining with labor unions can affect employee wages, benefits, and labor policies.

Question 15

Which of the following is an example of an organization's strategic response to its external environment?
A) Negotiating a new contract with the union
B) Hiring a new CEO
C) Implementing new plant safety standards
D) Doing nothing in response to a competitor's new product
E) Modifying the organization's culture

Accepted Answer

Doing nothing in response to a competitor's new product can be a strategic choice, indicating a deliberate decision to not react to external market changes, which reflects an organization's strategic response to its external environment.

Question 16

Competitive rivalry would be exemplified by
A) strategic alliances.
B) price wars.
C) mergers.
D) union strikes.
E) All of these choices

Accepted Answer

Competitive rivalry refers to the competitive struggle between the firms in an industry to gain market share, customers and profits. Price wars are a common example of intense competitive rivalry where firms engage in price-cutting to attract customers and gain an advantage over their competitors. Strategic alliances and mergers, on the other hand, are typically used to reduce competitive rivalry by collaborating with or acquiring competitors. Union strikes, while potentially disruptive, do not necessarily impact competitive rivalry as they are directed at employers rather than competitors within an industry. Therefore, the best choice for exemplifying competitive rivalry is B - price wars.

Question 17

Many organizations now have units that monitor a host of magazines and newspapers looking for stories that may have an impact on the organization.These units are
A) a form of management information system.
B) engaged in boundary spanning.
C) a type of organization control.
D) engaged in environmental scanning.
E) engaged in strategic planning.

Accepted Answer

Units that monitor magazines and newspapers for information that may impact an organization are engaged in environmental scanning, which is the process of monitoring an organization's internal and external environment for potential opportunities and threats. This is a way to stay informed and adapt to changes in the environment.

Question 18

Fast food chains make headlines when someone claims to find body parts or foreign objects in their food.The claims are usually false,but they increase the industry's
A) environmental turbulence.
B) environmental homogeneity.
C) competitive rivalry.
D) threat of new entrants.
E) boundary spanning.

Accepted Answer

The claims of finding body parts or foreign objects in fast food increase the industry's environmental turbulence, as it creates a sense of uncertainty and potential harm among consumers. This can lead to a negative impact on the industry's reputation and sales.

Question 19

Which of the following is an example of a merger?
A) Brown Electronics and Kelvin Data Systems form a new company,and Brown and Kelvin cease to exist.
B) Brown Electronics buys Kelvin Data Systems and continues to operate as Brown Electronics.
C) Brown Electronics buys Kelvin Data Systems,and Kelvin operates as a subsidiary of Brown.
D) Brown completes a hostile takeover of Kelvin.
E) None of these choices

Accepted Answer

In a merger, two companies combine to form a new entity, and the original companies cease to exist. This is exactly what happens in choice A, where Brown Electronics and Kelvin Data Systems form a new company, and both original companies cease to exist.

Question 20

The process of actively monitoring the environment through activities such as reading and observation is called
A) being socially responsible.
B) environmental scanning.
C) alliance creation.
D) informational management.
E) a strategic response.

Accepted Answer

Environmental scanning is the specific term used to describe the process of actively monitoring the environment through activities such as reading and observation. Option A, being socially responsible, is a broader concept that encompasses a wide range of actions taken by individuals or organizations to promote sustainable and ethical practices. Options C, D, and E are not directly related to the process of environmental scanning.

Quiz 3: Understanding the Organizations Environment

Which of the following illustrates the MOST common form of environmental turbulence?

National Industries,supplier to all Hometown Hardware Stores,manufactures many of the products it sells to member stores.What kind of response to the organizational environment does this represent?

Dollar Thrifty told Hertz and Avis Budget to submit their best and final proposals.In the end Dollar Thrifty combined with one of the companies in a(n)

Which of the following is the BEST example of environmental turbulence?

When two or more firms combine to form a new firm,it is called a(n)

An organization design that is mechanistic

Hunter sells security surveillance equipment to international airports.His job is to go to the prospective customer,examine the airport's current security,locate problem areas,and explain how his company's security surveillance system would eliminate these problems.Hunter is an example of a(n)

When Dayton Hudson was the target of a hostile takeover it was able to use its position of influence in the state of Minnesota to pressure the state legislature to change the laws preventing breakup of any company immediately after purchase.Dayton Hudson responded to the crisis using

The Northeast region of the U.S.experienced flooding from Hurricane Irene.This is an example of

Which of the following is an example of one of the basic mechanisms that organizations use to adapt to their environment?

A purchasing agent is an example of a(n)

Wal-Mart is the largest retailer in the world.It successfully pressures suppliers to lower prices.Wal-Mart uses

Organizations directly influence their environment by

Which of the following is an example of an organization's strategic response to its external environment?

Competitive rivalry would be exemplified by

Many organizations now have units that monitor a host of magazines and newspapers looking for stories that may have an impact on the organization.These units are

Fast food chains make headlines when someone claims to find body parts or foreign objects in their food.The claims are usually false,but they increase the industry's

Which of the following is an example of a merger?

The process of actively monitoring the environment through activities such as reading and observation is called